Finance

Entergy puts Google’s Arkansas power commitment at US$2.1 billion

The utility says previously reported payments for solar and transmission covered only part of Google’s 20-year commitment serving its West Memphis data centre.

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Owen Mercer
Markets and Finance Editor
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Source: Yahoo Finance · View original source
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Entergy has estimated that Google’s payments for power infrastructure serving its West Memphis, Arkansas, data centre could total approximately US$2.103 billion over 20 years, well above previously reported figures.

The reported figures included US$526 million for the Cypress Solar project and US$190 million for transmission. Entergy said the US$526 million represented an upfront payment and 12 months of minimum payments, rather than the full commitment.

The estimate comes as Google has described a US$4 billion investment in an Arkansas data centre. Entergy said the large customer would pay for 100 per cent of its power needs and that the arrangement would provide US$1.1 billion in benefits to other Arkansas customers.

The precise economics remain disputed in publicly released records. The available material does not establish the complete payment structure or the approved treatment of the costs in rates.

Entergy’s US$2.103 billion figure is therefore an estimate by the utility, not a confirmed final contract value. The data centre’s eventual sustained power demand and the financial returns from the arrangement also remain unclear.

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